Ecuador moves to increase state control over the oil industry

Tuesday, July 27th 2010 - 20:20 UTC

Full article 6 comments

OPEC member Ecuador says it will start renegotiating contracts with private oil companies as it moves to increase state control over the sector. Under the new hydrocarbons law, the current production-sharing agreements will be replaced by a flat fee. Read full article

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Think
That's the way to go Rafael.
Another good president working for the Bolivarian proyect.
Jul 27th, 2010 - 08:47 pm - Link - Report abuse 0
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Liberty
Another one bites the dust....another one bites the dust; another member of the Chavez Kirchners Leftish Oil Club. Wow!!... I'm impress, they knock each other at the way to the toilet.
Jul 27th, 2010 - 10:25 pm - Link - Report abuse 0
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avargas2001
Good for Ecuador !
“However it was reported that Anglo-French company Perenco Corp. is analyzing Ecuador's decision to end its contracts and is hoping a tribunal will order compensation.”
I think a good compensation for them would be 25% of the concession sale price minus corporate tax.

it was about time the latin governments woke up to the smell of money.
“In 2007, taxes in Canada represented, on average, 32% of the pump price.”
and we don't see anyone calling Canada a Bolivarian Revolution yet unless white people deside to re-arange the meaning of “taxes” or “Bolivarian Revolution” as my good friend #1 pointed out,
http://retail.petro-canada.ca/en/fuelsavings/2139.aspx
witch brings us back in history to Venezuela 2000, economic meltdown and the political birth of a great leader, Hugo Chavez.
http://retail.petro-canada.ca/en/fuelsavings/2139.aspx
Now Ecuador seems willing to confront it's corrupt state of affairs.
Jul 28th, 2010 - 02:23 am - Link - Report abuse 0
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Hoytred
“ ...Critics say that the new law may deter investors from Ecuador's oil and gas sector, the country's main source of income....”

Hey, I know somewhere else that they can invest in ... :-)

“ ... The law automatically came into effect on Tuesday after the Ecuadorean Congress failed to meet the time limit set to vote on it...”

Now there's an interesting approach to law making .... and indeed to democracy!
Jul 28th, 2010 - 06:37 am - Link - Report abuse 0
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jerry
“it was about time the latin governments woke up to the smell of money” ?? Do they ever think of anything else? Liberty, you have it right.
Jul 28th, 2010 - 01:36 pm - Link - Report abuse 0
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harrier61
Seems like a bit of State theft to me. But Argentines will appreciate it. They are born to steal.
Jul 29th, 2010 - 04:25 pm - Link - Report abuse 0
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